Abstract [en]

This study was performed as a bachelor thesis at the Royal Institute of Technology in Stockholm, Sweden, in the spring of 2012. The project was carried out as a Minor Field Study in Lusaka, Zambia, in collaboration with Mr. Obert Mambwe at Petrec Zambia Limited. The local waste management in Lusaka suffers from severe overload due to insufficient funds and rapid population growth. This has resulted in the inability to collect approximately fifty percent of the total produced waste, including an estimated 2.9 tons of PET plastic bottles per day. Petrec Zambia Limited has identified this as a business opportunity in terms of plastic recycling but lack a developed structure to include the residents of Lusaka in the collection process. Thus, the main objective of this study was to design minimum-cost collection points to enable individual collection of PET plastic bottles on cash basis. This study focuses on the Greater City of Lusaka as the operation of recycling in terms of a profit driven organization is dependent on high concentrations of post-consumer products. To achieve a satisfying result, the designing of the operational structure was based around defining; (i) the potential number of collection points, (ii) proper locations and (iii) the financial incentive offered to the collectors. The objectives were then complemented with a number of limitations set in coherence with Mr. Obert Mambwe. These were as follows; (i) A fixed collection rate of 800kg per day, (ii) transport was to be managed with a five-ton truck, (iii) wages were to be taken from the business plan, (iv) the total operating cost could not exceed 0.30 USD per kilo. An eco-demographic survey along with studies of poverty lines and minimum wages were used to define the target audience for the project. The result showed that the highest potential was found among the low-income holders in the high-density areas of Lusaka. Locations suited for the collection points were chosen by studying areas where large quantities of individuals from the identified customer segment pass through on a daily basis. Lusaka has a number of market areas located in the preferred areas. These markets fit the previously mentioned criteria and were therefore chosen as focus areas of the project. The locations were ranked by potential of collection by studying their geographic locations, number of registered businesses and relative distances. The study showed that the first four locations were to be chosen within the city center, followed by additional collection points in Chibolya, Mwamba Luchembe and Libala. The majority of the information used in this project was gathered through interviews during a two-month field study in Lusaka. The information was processed in an iterative model where locations were added and continuously analyzed in terms of material flow distribution and the corresponding impact on the financial incentive. It is important to note that this study does not aim to present a single solution to the stated problem, but rather to present the different combinations of accessibility and incentive possible for profitable collection. The overall assessment of this study supports the viability of using between four and seven collection points. Both extremes each represent a way of dealing with the problem addressed in this project. Four stations results in a high financial incentive of 0.17 USD per kilo. However, this requires the higher incentive to outweigh the disadvantages in terms of reduced accessibility. To be able to handle the resulting material flow, these four stations need two employees each. Seven stations on the other hand increase the accessibility but also increase the overall operating cost, consequently lowering the incentive to 0.11 USD per kilo. This option also requires a reduction of the workforce in order to maintain overall profitability.